Revenue grew 10% to $605 million. In constant currency, net revenue increased by 13.1%.
Operating margin decreased 350 basis points to negative 3.6%. This was due to the charges related to the estimated European Commission fine and higher distribution costs related to the relocation of its European distribution center. This was partially offset by the favorable impact from higher European wholesale shipments and lower markdowns in Americas Retail.
Looking ahead into the fourth quarter, the company expects revenue to increase in the range of 4% to 6% in US dollars basis and 7.5% to 9.5% in constant currency basis. Earnings are anticipated to be $0.69 to $0.76 per share. Operating margin is predicted to be 9.5% to 10% for the quarter.
For the full year 2019, the company now predicts revenue growth of 10% to 10.5% and GAAP EPS in the range of $0.57 to $0.64. Adjusted earnings are now anticipated to be in the range of $0.96 to $1.03 per share. GAAP operating margin is predicted to be 2.5% to 2.8% and adjusted operating margin is projected to be 4.5% to 4.8%.
For the third quarter, in US dollars, Americas Retail revenues decreased 0.1% despite a 3% increase in retail comp sales including e-commerce, while Americas Wholesale revenues increased 15.5%. Europe revenues increased 14.8% helped by an 8% rise in retail comp sales including e-commerce. Retail comp sales including e-commerce growth of 8% drove Asia revenues higher by 20.4%. Licensing revenues rose by 7.4%.
In addition, the company’s board of directors approved a quarterly cash dividend of $0.225 per share on its common stock. The dividend will be payable on January 2, 2019, to shareholders of record at the close of business on December 12, 2018.
Shares of Guess ended Wednesday’s regular session up 1.81% at $21.88 on the NYSE. The stock has risen over 29% in the year so far and over 36% in the past year.